Venezuela Could Be Shifting to the US Dollar: Is It Bad for Crypto?

NewsFri, 21 Aug 2026 19:09:55 UTC3 hours ago

Venezuela is moving closer to formal dollarization, with economist Steve Hanke drafting a bill to abolish the bolivar. According to reports, the National Assembly appointed him as a special adviser this month.

The Johns Hopkins economist drafted a full dollarization law that would abolish the bolivar and the central bank. He puts the odds of passage at 50% to 80%.

Since 2017, I have maintained that dollarization is Venezuela's best defense against hyperinflation.

I am grateful to Professor @steve_hanke for mentioning our work in Fortune and, especially, for agreeing to serve as an advisor to the Lápiz National Parliamentary Delegation on…
- Antonio Ecarri A. (@aecarri) August 20, 2026

What Hanke's Dollarization Plan Actually Proposes

According to Fortune, Hanke is working on the project alongside Assembly member Antonio Ecarri, founder of the centrist "Lápiz" party.

This marks Hanke's second attempt at this cure in Venezuela. In 1995 and 1996, he designed a currency board as chief economic adviser to President Rafael Caldera, a plan that failed to win a majority in the National Assembly.

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Venezuela Could Be Shifting to the US Dollar: Is It Bad for Crypto?

What Hanke's Dollarization Plan Actually Proposes

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